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Marijuana market to reach billions, cannabis kiosk provider ups production

Research released by Vancouver, Canada-based ArcView Group Market Research predicts a 64 percent boost in legal marijuana sales in the U.S., reaching $2.34 billion by the end of 2014, according to a press release from Kaneh Bosm BioTechnology Inc.

November 14, 2014

Research released by Vancouver, Canada-based ArcView Group Market Research predicts a 64 percent boost in legal marijuana sales in the U.S., reaching $2.34 billion by the end of 2014, according to a press release from Kaneh Bosm BioTechnology Inc.

This figure is up from the initial $1.53 billion sales were expected to reach by the end of the year. If legalized throughout the country, the marijuana industry could grow to revenues of $40-60 billion a year, 10 to 20 percent of the alcohol market, the company stated.

The predictions have spurred Kaneh Bosm to structure three verticals to earn a share of the potential revenues, including an automated Cannabis retail kiosk, the BioCanna ADM; a greenhouse production center; and a Cannabis production facility division, Kaneh Bosm EPC.

In an interview with Financial Press, according to the press release, Kaneh Bosm President and Director Michael Martinz reported, "Our research indicated that there is a strong desire for an automated retail system. Our BioCanna ADM (Automatic Dispensing Machine), the automated retail kiosk system, may be a rapid pathway to revenue generation. We are looking to lease these units to retailers for around $1500 per month, plus software licensing and servicing fees. Hypothetically, with 1000 kiosks in service, our gross monthly revenues will exceed $1.5 million."

An agreement signed with Alps Innovations gives Kaneh Bosm exclusive North and South American rights to the automated retail kiosk, the BioCanna ADM, for dispensing marijuana and related products.

"Some consumers don't like the fact that the product is handled by multiple people," said Martinz, "Certainly if you are taking medical marijuana, you may have a compromised or weakened immune system, so you clearly do not want exposure to any pathogens. Further, proprietors of dispensaries are dealing with a largely cash-based business, which creates a vulnerability to theft. The kiosk solves all those problems. It accepts a variety of payments, it won't steal or be late for work, it protects your inventory, and minimizes labor costs. Additionally, where regulations permit, it may give you 24/7 functionality from your rental space."

The kiosk requires users to submit an ID for release and tracks purchases from a central server.

"The business metrics are very solid. If a kiosk sells just one pound of Cannabis per day, that will generate about $1.6 million a year in sales at $10 per gram," Martinz stated.

Kaneh Bosm also signed a Letter of Intent with British Columbia, Canada-based Pentiction Indian Band to pursue a Licensed Producer status with Health Canada's Medical Marijuana Production Regulations. The joint venture identifies the companies as producers of marijuana and other medicinal plants. The partners developed a three-phase plan for the production facility:

1. Construction of a 12,000 square foot indoor medical Cannabis facility;

2. Construction of the first phase greenhouse, comprising one vegetative and two flowering bays totaling 48,000 square feet; and

3. Completion of the greenhouse with two more flowering bays totaling 100,000 square feet of production space in a state-of-the-art greenhouse.